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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.

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Why Too Many Startups (er) Suck

Steve Blank

While statistics are weak on startup success rates, the worst one I’ve seen suggests that 2 in 1000 venture backed startups will ever achieve $100-million or more in valuation. Either way, the “hurdle” for successful, scalable startups is high, and it gets higher every day as customer acquisition challenges continue to increase.

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How We Launched a New Saas Brand and Won at SEO

Up and Running

Our major challenge was how do we compete with companies that have billion-dollar valuations, millions in investor funding, and millions in revenue? Our answer was simple– SEO (search engine optimization). The higher the score, the more Google and other search engines identify the information you provide as being useful.

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Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

is an elegant way to model any service-oriented business: Acquisition Activation Retention Referral Revenue We used a very similar scheme at IMVU, although we werent lucky enough to have started with this framework, and so had to derive a lot of it ourselves via trial and error. But its not really viral growth, even when its exponential.

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How to Raise Money – It’s a Journey Not An Event

Steve Blank

At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). You need to begin to “instrument” your customer acquisition process with analytics. 2M in 18 months.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. ff Venture Capital hired two full-time engineers to build out Totem. 7) Negotiate .

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New Rules for the New Internet Bubble

Steve Blank

The signals are loud and clear : seed and late stage valuations are getting frothy and wacky, and hiring talent in Silicon Valley is the toughest it has been since the dot.com bubble. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits from the inflated valuations. Carpe Diem.

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